Moonwell cuts collateral limits, drops VELO and wrsETH on Base and Optimism

Moonwell passed MIP-X75, cutting collateral limits and removing VELO and wrsETH as eligible collateral on its Base and Optimism deployments. The change reduces backing available for existing loans, so borrowers near their limits face liquidation unless they repay debt or add eligible collateral. Traders holding VELO or wrsETH positions on Moonwell should watch for forced selling and liquidation cascades.